Tag: Economics

The UK government is concerned about the market influence of a large electricity producer and was keen to take control of the company to solve the problem.

What might be the possible result of this?

Select ONE answer:

1. an increase in the role of the market of the UK government
2. an increase in public ownership
3. an increase in the role of the UK consumer in the market dynamics
4. an increase in the amount of competition in the UK energy market

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Too much sugar can apparently cause an increase in a consumer’s weight.

The UK government has introduced a ‘sugar tax’ on the consumption of soft fizzy drinks that have a high sugar content in order to help solve the perceived problem.

How might this policy help to reduce the number of overweight people in the UK?

Select ONE answer:

1. Consumers switch to cheaper brands of soft drink with a high sugar content.
2. Consumers switch to other high-sugar substitute goods, such as alcohol or sweets.
3. The price elasticity of demand for soft drinks is inelastic.
4. The tax revenue raised is spent on education about the dangers of soft drink consumption.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which of the following is a transfer payment?

Select ONE answer:

1. the advertising expenditure of a firm
2. the allowance given by a parent to their child while at school
3. the rent paid to a land owner by a tenant farmer
4. the wage paid to a worker in the government service

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which combination of events is most likely to leave the demand curve for a normal good in the same position?

Select ONE answer:

1. a decrease in consumer incomes and an increase in the price of a substitute good
2. a decrease in consumer incomes and an increase in the price of the good
3. an increase in consumer incomes and an increase in the price of a substitute good
4. an increase in consumer incomes and an increase in the price of the good

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The cross elasticity of demand between two products, X and Y, is negative.

What would be the immediate effect of a rise in the price of product Y?

Select ONE answer:

1. Quantity demanded of product X will fall.
2. Supply of product X will rise.
3. The cross elasticity of demand will rise.
4. The price of product X will rise.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.